Summary of Report 10-036

August 2010

Report Number 10-036

Nine (69 percent) of 13 groundwater conservation districts (districts) fully or partially achieved all groundwater management plan goals audited. Those districts included:

• The Blanco-Pedernales Groundwater Conservation District.
• The Bluebonnet Groundwater Conservation District.
• The Coastal Bend Groundwater Conservation District.
• The Lost Pines Groundwater Conservation District.
• The Neches and Trinity Valleys Groundwater Conservation District.
• The North Plains Groundwater Conservation District.
• The Plum Creek Conservation District.
• The Presidio County Underground Water Conservation District.
• The Rusk County Groundwater Conservation District.

Three (23 percent) of the 13 districts audited fully or partially achieved two to three of the four goals audited. Those districts were:

• The Brazos Valley Groundwater Conservation District.
• The Corpus Christi Aquifer Storage and Recovery Conservation District.
• The Middle Pecos Groundwater Conservation District.

One (8 percent) of the 13 districts audited, the Gateway Groundwater Conservation District, partially achieved one of the four goals audited.

Auditors reviewed districts' activities to achieve four of the eight goals required by statute. The goals reviewed were:

• Providing the most efficient use of groundwater.
• Controlling and preventing waste of groundwater.
• Addressing drought conditions.
• Addressing conservation.

A list of the eight statutorily required groundwater management plan goals is presented in Appendix 4.

Districts' Compliance with Statutory Requirements

Twelve of the 13 districts audited were in full or partial compliance with 7 or more of the 10 Texas Water Code statutory requirements (the Bluebonnet Groundwater Conservation District and the Neches and Trinity Valleys Groundwater Conservation District fully complied with all requirements). The remaining district-the Corpus Christi Aquifer Storage and Recovery Conservation District-complied with three of the five requirements that were applicable to it (five requirements did not apply because that district did not have any revenue in the time period audited).

Examples of the statutory requirements included obtaining surety bonds for employees and members of the board of directors, obtaining an annual financial audit, adopting annual budgets, complying with documentation requirements, enforcing limits on fees for board members, and holding quarterly board meetings.

The requirement to obtain surety bonds for employees handling district funds had the highest level of noncompliance. Six (50 percent) of 12 districts audited did not fully comply with this requirement. Specifically:

• Four districts did not obtain the required surety bonds. Those districts included the Lost Pines Groundwater Conservation District, the Middle Pecos Groundwater Conservation District, the Presidio County Underground Water Conservation District, and the Rusk County Groundwater Conservation District.
• Two districts did not fully comply with the surety bond requirement. Those districts were the Brazos Valley Groundwater Conservation District and the Coastal Bend Groundwater Conservation District.

Surety bonds protect districts from financial loss and provide some assurance that the districts are properly safeguarding their funds and are able to meet financial obligations.

Two of the 13 districts audited-the Brazos Valley Groundwater Conservation District and the Middle Pecos Groundwater Conservation District-have been operating under expired groundwater management plans. The Brazos Valley Groundwater Conservation District's groundwater management plan was due in July 2009, while the Middle Pecos Groundwater Conservation District's groundwater management plan was due in August 2009. Each district is required to review its groundwater management plan every five years, determine whether changes are necessary, and obtain approval of the groundwater management plan from the Water Development Board. The Water Development Board last approved the Brazos Valley Groundwater Conservation District's groundwater management plan in July 2004, and it last approved the Middle Pecos Groundwater Conservation District's groundwater management plan in August 2004.

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